LKQ Corporation Q4 EPS Miss by 6¢; Revenue Falls 1.5% to $3.31B, Guides 2026 EPS $2.90-$3.20
LKQ reported Q4 adjusted EPS of $0.59, missing estimates of $0.65 while revenues fell 1.5% year-over-year to $3.31 billion, though topping forecasts by $50 million. The company completed its Self Service divestiture, reduced long-term debt to $3.63 billion and projected 2026 EPS of $2.90-$3.20.
1. Q4 Earnings Results
LKQ reported adjusted Q4 EPS of $0.59, missing the $0.65 estimate and down from $0.80 a year earlier. Revenues declined 1.5% year-over-year to $3.31 billion but topped forecasts by $50 million.
2. Segment Performance
Following the sale of its Self Service unit, North American revenues rose to $1.374 billion with EBITDA of $174 million. European sales grew to $1.56 billion (EBITDA $130 million) while Specialty segment revenues reached $377 million with EBITDA of $17 million.
3. Financial Position and Capital Return
Cash rose to $319 million as of Dec. 31, 2025, and long-term obligations dropped to $3.63 billion. The company repurchased 1.3 million shares for $40 million in Q4 and declared a $0.30 quarterly dividend.
4. 2026 Guidance
LKQ forecasts parts and services organic revenue change of -0.5% to +1.5% and adjusted EPS of $2.90-$3.20 for 2026. It expects operating cash flow of $900-$1,100 million and free cash flow of $700-$850 million.